From Barchart: 2025-03-24 05:14:00

Deutsche Bank’s report shows a shift to slightly underweight equity positioning, with discretionary positioning approaching neutral ahead of President Trump’s April 2 tariff announcements. Strategists warn that if positioning drops to historical lows, the S&P 500 could fall to around 5,250, highlighting downside risks tied to trade policy uncertainty.

Equity allocation is slightly underweight, with discretionary positioning at the 47th percentile and systematic strategies notably underweight at the 24th percentile. Uncertainty over President Trump’s tariff plans is driving cautious market behavior, as investors fear additional tariffs could further unsettle the market.

The report notes a contrast between weakening survey data and strong hard data, leading to mixed expectations for market performance. Investors are awaiting clearer signals from the upcoming tariff announcements to gauge market sentiment and potential impact on various sectors.

Strategists caution that if equity positioning reaches historically low levels seen during previous trade wars, the S&P 500 could potentially drop to 5,250. This underscores the importance of monitoring market indicators like the Williams %R API and sector valuations through the Sector P/E Ratio API for navigating potential volatility and identifying opportunities.



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